need help understanding this problem, as well as solving it.

29. An investment offers al0.5 percent total return over the coming year. Sam Bernanke thinks the total real return on this investment will be only 4.5 percent. What does Sam believe the inflation rate will be for the next year? A. 6.21 percent B. 6.00 percent C. 5.67 percent D. 5.60 percent E. 5.74 percent (1 + 0.105)= (1 + 0.045) (1 + h); h - 5.74 percent